¿What Is A Securitization?

Constantly, we face the term "securitization" in comments and financial news. It is common to read that those who carried out mortgage securitizations in the US were the ones to blame for the global financial crisis that began in 2008. But it is also common to hear that asset securitizations are an alternative source of financing, especially for companies with limited access to bank financing. But, concretely, what is a securitization?

Securitization is a process whereby a company's future cashflows, derived from its sales of goods or services, are used to support a financing, generally through a trust that carries out securities issuances in the national or foreign markets.

The processes of securitization involve experts in several matters, financial advisors and brokerage firms, accountants, lawyers, fiduciaries, companies specialized in managing this type of operations, tax specialists and rating agencies.